Taxpayer owns 30% of a C Corporation that is closing. Any net cash from corporation is paid to shareholders as a dividend, and the C corp generates a 1099-DIV for that payment. But the C Corporation also owns shares in another C Corporation, and there is no easy way to value those shares because it is a private company. Presumably the stock certificates owned by the closing C Corporation are given to the closing C Corporation's shareholders, but is this a "dividend" or some other form of 1099 income?
For tax purposes, how should this distribution be reported, and what is the correct way to determine value of those certificates?